Central London office sales and leasing deals have plunged ahead of Britain’s imminent departure from the EU, new data showed on Wednesday.
Property agent JLL said £1.5 billion of office transactions were agreed in the three months to March 31, while 2.1 million square feet of new offices were signed for. That is down 40% and 14% respectively from a year earlier.
It blamed the muted start on political uncertainty.
Julian Sandbach, JLL’s head of central London capital markets, insisted would-be buyers and tenants are still committed to London.
He said: “Undoubtedly clarity around Brexit will see transaction levels rebound in the second half of the year.”
There are around £2 billion of deals in advanced negotiations, according to Sandbach, with strong demand from international and domestic buyers that see longer-term rental growth here.
JLL also estimates there are around 3.3 million square feet of leasing deals close to signing in the West End and City.
In the residential sector, London estate agent Winkworth saw the number of homes it was instructed to sell fall 10% in the first quarter.
Group sales at Winkworth rose to £6 million in 2018 from £5.4 million, helped by rental demand.
